Immunovaccine (IMV.TO) is in very good shape. Just a week ago, InvestingHaven analysts wrote 3 Nano-Cap Technology Stocks With 10-Bagger Potential In 2017 And 2018 in which Immunovaccine was listed as the top favorite stock. One week later, the stock is trading almost 30 percent higher. In other words, Immunovaccine is a biotech stock with very strong momentum.
Last week, its market cap was $104M. Right now, it is already $140M, according to Yahoo! Finance.
We wrote that “the company is doing something well at this point, given the combination of a strong breakout in price on multi-year high volumes.” One week later, we see how our observation was spot-on.
Readers know meantime that we do not consider the news to be a leading indicator for investments. However, in the case of strong momentum in a stock, there is a possibility that news is the driver. In the case of Immunovaccine, it appears that it has a candidate for one of the hard-to-treat forms of cancer (ovarian cancer). The company announced that the Princess Margaret Cancer Centre, a global leader in the fight against cancer, will conduct a Phase 2 clinical trial to evaluate the use of a combination of immunotherapies from Immunovaccine and Merck, as seen in this press release from Immunovaccine on MarketWired.
In December last year, the company announced the closing of $8M private placement offering a total of 10,666,667 common shares at $0.70 per share. The company’s CEO commented that “this second equity financing in six months is, in our opinion, a tangible recognition of our achievements and long-term potential. We are very pleased that one of the largest mutual fund and financial groups in the world was a lead investor with additional participation from long-term IMV supporter Ruffer LLP. Adding CTI Life Sciences, who led the previous financing, we have now established a strong investor base to support our growth and value creation.”
Typically, stocks in momentum tend to run out of steem after some weeks or even days. Immunovaccine is nearing its all-time highs at $1.50 per share. The key question is what happens around that price level. Volume is currently very high compared to previous levels, so it will be crucial to see how much additional buying interest the company will get from other market participants.
If the company releases a breakthrough in cancer treatment then this stock will be a ten-bagger in 2017 or 2018.